Answer:
a) $530
b) $ 130
c) 20 months.
Step-by-step explanation:
a)
Total installment price:
As we have to pay a installment of $20 per month for 24 months; also there is a down payment of $ 50
Hence, the total installment paid=$ 50+20×24=$ (50+480)=$ 530
Hence the total installment price is $ 530.
b)
carrying charges:
Carrying charges are the charges one has to pay when installment price is subtracted from the cash price.
Carrying charge= $ 530-$ 400=$ 130
Hence, Carrying charges is $ 130.
c)
number of months needed to save the money at the monthly rate to buy the item for its cash price:
As the cash price is $ 400.
Let 'n' denote the number of months we have to save money at the monthly rate.
As the monthly rate is $20.
Hence 20 n= 400
⇒ n= (400/20)=20
Hence, for 20 months the money have to be saved to buy the item for it's cash price.
